Pre-tax dollars to pay for medical, dental and dependent care services
What is an FSA?
An FSA is an employee benefit plan authorized by Internal Revenue Code Section 125. With an FSA, an eligible employee can elect to contribute funds on a voluntary, pre-tax basis that can be used to reimburse the employee for certain qualified expenses that have not been reimbursed from other coverage. This can generate significant tax savings for both the employee and the employer.
There are two types of accounts that can be offered through the FSA:
Health Care Account - this account is for certain health care expenses not paid by insurance. These include co-payments, deductibles, eyeglasses, physicals, prescriptions and other expenses.
Dependent Care Account - this account is for dependent care expenses that allow the employee (or the employee's spouse) to work, or to attend school full-time.
In addition, a Flexible Spending Account plan typically includes a Pre-Tax Premium Plan, to allow employees to pay for their share of health (and other) insurance premiums on a pre-tax basis through payroll deductions.
Helping Employees Decide How Much to Contribute
We make it easy for employees to figure out how much to contribute to their FSA with the following tools:
Lifetime Benefit Solutions makes it Convenient
Employees will enjoy the efficiency and convenience of administering their account through Lifetime Benefit Solutions, an affiliate of Univera Healthcare. They can submit their claims via mail, fax or e-mail. Tax-free reimbursement of expenses can be made by check-or by direct deposit into their bank account.
Lifetime Benefit Solutions also offers the Health Spending Card. The Health Spending Card automates reimbursement of eligible FSA expenses by paying the provider at the point of service. Employees can also use the Health Spending Card to pay section 132 Parking/Transit Account expenses. This offers additional tax savings and convenience.
And employees can enjoy the online convenience of the Lifetime Benefit Solutions Web site to view their account activity, download forms, access enrollment materials and other information, or submit claims.
How does a Flexible Spending Account benefit an employer
Offering a Flexible Spending Account to your employees can produce significant savings to the Employer through decreased FICA taxes. Here's an example of Estimated FICA Savings for Employers.
How does a Flexible Spending Account benefit an employee?
Offering a Flexible Spending Account to your employees can increase an Employee's spendable income and decrease income taxes because it is a pre-tax contribution. Here's an example of Estimated Employee Savings.
For more information, contact your sales consultant or broker.